Freelancers (freie Mitarbeiter) are self-employed people working under a service or work contract (§§ 611, 631 BGB) rather than as employees. They are not bound by instructions or integrated into the business; dismissal protection, vacation, and continued pay when sick do not apply. The main risk is false self-employment (Scheinselbstständigkeit, § 7 SGB IV), which a status determination under § 7a SGB IV can clarify.
At a glance
- The legal basis is a service contract (§ 611 BGB) or a work contract (§ 631 BGB), not an employment contract
- No employee status: no subordination to instructions, no integration into the business organisation
- The line to employee status is drawn under § 611a BGB through an overall assessment, not by what the contract is called
- No dismissal protection, no continued pay when sick, no statutory vacation entitlement
- Freelancers pay their own taxes and are generally responsible for their own social security
- The key risk is false self-employment (Scheinselbstständigkeit, § 7 SGB IV); a status determination under § 7a SGB IV provides certainty
Distinguishing employees and status determination
- What counts is how the work is actually performed, not the contract title: someone who works under instructions and is integrated is an employee (§ 611a BGB), even under a "freelancer" contract
- Scheinselbstständigkeit exists when a formally self-employed person is in fact a dependent employee; the consequence is back-payment of social security contributions (§ 7 SGB IV)
- A status determination procedure (Statusfeststellungsverfahren) with the German pension insurance (§ 7a SGB IV) can settle the status bindingly, since 2022 also in advance as a forecast decision
- See the "Scheinselbstständigkeit" card for more
FAQ
What separates a freelancer from an employee?
Freelancers work independently, without being bound to instructions on time, place, and content, and are not integrated into the client's organisation. Where that independence is missing in practice, § 611a BGB treats the relationship as employment.
What is Scheinselbstständigkeit?
Scheinselbstständigkeit (false self-employment) means someone appears formally self-employed but is in fact a dependent employee. It triggers social security liability and can lead to back-payments of contributions by the client (§ 7 SGB IV).
How can the status be settled with legal certainty?
Both client and contractor can apply for a status determination procedure under § 7a SGB IV at the clearing office of the German pension insurance (Deutsche Rentenversicherung). It is free of charge and, since 2022, can be requested before the work begins as a forecast.
Do freelancers get vacation or continued pay when sick?
No. Statutory vacation (BUrlG), continued pay when sick (EntgFG), and dismissal protection apply only to employees. Freelancers must arrange these points by contract and provide for themselves.
Last updated: August 2026
This article provides general information and is not a substitute for legal advice in individual cases.
